India: Ferro silicon prices continue to decline on subdued demand

Indian ferro silicon prices continued their downward trend, experiencing a decrease of INR 1,900/t w-o-w. Prices fell as demand remained subdued and an ample amount of the material was available in the market.

According to SteelMint's assessment on 28 July, Indian ferro silicon prices stood at INR 105,300/t exw-Guwahati. Around 1,000 tonnes (t) of deals were concluded in the range of INR 105,000-106,000/t. Similarly, offers from Bhutan saw a drop of INR 1,700/t w-o-w with 600 t of deals assessed by SteelMint at the same price.

Factors affecting prices

Reduced demand amidst an oversupply of material: Lack of demand remained the major factor which affected the prices and forced producers to adjust their pricing strategy. In contrast to the lack of demand, there was an excess of material readily available in the market. Despite this, the producers needed to ensure that they had enough cash flow to cover their operational expenses and other financial obligations.

Awaiting upcoming prices from Bhutan: Market players were awaiting the monthly price announcement from Bhutan, usually made at the beginning of each month. Overall, the dynamic nature of the market, coupled with the regular monthly price announcement, created an environment where market players were cautious and closely monitored the situation to make decisions based on the actual price information when it becomes available.

Volatile stainless-steel market: The domestic stainless-steel market remained volatile, influenced by cheaper imports, prompting producers to reduce prices. As a result, raw material prices declined, further impacting ferro silicon prices.

Outlook

Given the current sluggish demand in the market, ferro silicon prices are likely to remain on the lower side. A clear outlook is expected in the coming weeks, based on the announcement of new prices from Bhutan.